The global food grade alcohol market size is anticipated to reach USD 2.90 billion by 2025. It is expected to expand at a CAGR of 3.7% during the forecast period. The growth is driven by an increase in consumption and trade of alcohol, owing to its wide range of application across various sectors, such as food and beverage, pharmaceuticals, personal care, and others.
A change in lifestyle and food consumption habits are the major factors driving the growth. High demand for ready to eat products is driving the need for preservatives too boost the shelf life of these products. Healthcare and pharmaceuticals industry uses ethanol for cleaning and sterilization of medical equipment before use.
India, China, and Brazil are some of the major countries expected to showcase lucrative growth in the food grade alcohol market. Rise in urban population, improved standard of living, and changing food consumption habits are anticipated to boost the trade of alcohol, driving the growth of the market.
Food and beverage held the largest market share of more than 35% in 2018, owing to the wide range of application in this industry. The personal care segment is forecasted to expand at a CAGR of 3.9% in terms of revenue and 2.5% in terms of volume, from 2019 to 2025. Innovation and development in cosmetics and skincare is the major factor driving the growth. For instance, the sanitizers with more than 60% alcohol content are proven to be most effective.
In 2018, ethanol held a market share of 73.47%, in terms of volume, owing to the use of the product in food and beverage industry. Polyol is expected to expand at a CAGR of 4.0% in terms of revenue during the forecast period. The demand for polyol is increasing in food and beverage industry owing to its health benefits. For instance, polyols are used instead of sugar in many products as it can lower calories and blood sugar level.
In 2018, Europe held the largest market share of 35.7% in terms of volume. High consumption of alcohol and continuous innovation in food and beverage are the primary factors driving the growth. Asia Pacific is expected to register the fastest CAGR of 4.7% from 2019 to 2025. Increased urbanization and improved standard of living are the primary factors boosting the regional growth.
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Further key findings from the report suggest:
- Food and beverage segment held the largest market share of more than 35% in 2018
- Personal care segment is forecasted to register a CAGR of 3.95% in terms of revenue and 2.5% in terms of value, from 2019 to 2025
- Ethanol held the largest market share of 73.47% in terms of volume in 2018. Polyol is expected to expand at a CAGR of 4.0% in terms of revenue, from 2019 to 2025
- Key market players are as MGP Ingredients, Roquette Freres S.A., Cargill Incorporated, Active Char Products Pvt Ltd, Archer Daniels Midland Company, Cristalco, Jiangsu Huating Biotechnology, Grain Processing, Malindra, Wilmar International, Muby Chemicals, Spectrum Chemical MFG Corp, Fonterra Co-operative, among others
Grand View Research has segmented the global food grade alcohol market on the basis of application, product, and region:
Food Grade Alcohol Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)
- Food & Beverage
- Pharmaceuticals
- Personal Care
- Others
Food Grade Alcohol Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2015 - 2025)
- Ethanol
- Polyol
